Unlocking the potential of Erf 191.
TS Venture Capital is seeking funding partners to help rehabilitate and activate an existing accommodation property in Breyten, with a proposed 20-room rental model.
An existing property with room to improve.
The project centres on bringing an existing accommodation property back to a more functional, lettable and professionally managed condition.
The proposed model combines self-contained bachelor units with standard rooms using shared bathroom facilities. The funding programme is intended to address key municipal, refurbishment and infrastructure requirements so that the property can move towards stable rental operations.
The focus is on practical improvements and making the existing accommodation more usable—not a ground-up development.
Project location: Breyten, Mpumalanga
A 20-room accommodation plan.
The figures below are the proposed asking-rent assumptions used for initial project modelling. They are not confirmed leases or guaranteed collections.
Bachelor units
Proposed monthly rent per unit: R2,500
Standard rooms
Proposed monthly rent per room: R1,800
Illustrative gross rental only. Actual performance will depend on occupancy, achievable rents, tenant payment behaviour, operating costs, municipal charges, maintenance and the agreed owner / operator arrangement.
Put the fundamentals in place.
The work programme is intended to prioritise the improvements that support safe operation, tenant usability and rental readiness.
Municipal account: address the electricity-related arrears through a negotiated and municipality-approved settlement arrangement.
Bathrooms and hot water: refurbish shared bathroom facilities and install or complete geyser and plumbing requirements for the accommodation.
Electrical readiness: install missing room breakers and have the electrical installation inspected and tested by a suitably qualified professional.
Room readiness: complete painting and other practical finishing work, including bachelor-unit kitchenettes and bathrooms.
Outside works: improve parking, paving and night-time illumination.
Proposed use of the R300,000 target.
The current working allocation is indicative and will be refined against municipal negotiations, contractor quotations and a verified scope of work.
Municipal arrears / settlement provision
Provision towards an agreed municipal settlement. The working agreement records reported arrears of R264,818.52 and an illustrative proposed initial settlement of R132,409.26, both subject to a current statement and written municipal acceptance.
Refurbishment and infrastructure
Bathrooms, geysers and plumbing, electrical breakers and testing, painting and room finishing, parking and paving, lighting, and related project costs.
The allocation is a planning estimate, not a final bill of quantities. If the municipal settlement or verified works cost differs, the budget and project scope will need to be adjusted before funds are committed.
From funding to operating accommodation.
A disciplined sequence is important: secure the underlying rights and approvals, complete the priority work, then build occupancy and rental collections.
Verify and agree
Confirm the lease, owner consents, municipal balance and settlement terms, project budget, and investor documentation.
Rehabilitate
Apply funds to the approved municipal and property work programme, with invoices, records and progress reporting.
Let and operate
Prepare rooms for occupation, market the accommodation, manage tenants and collect rentals to support operating costs and investor obligations.
A defined return structure, not an open-ended rental share.
The current commercial direction is to agree a fixed total return and a defined repayment period, with repayment supported by available project cash flow.
Proposed fixed total return on the investor’s original contribution over the agreed term. This is not 20% per year.
Proposed maximum repayment period, subject to the final signed investor agreement and legal review.
Rental receipts first support essential municipal and operating costs and a reasonable reserve; available distributable cash is then applied to investor repayment under agreed terms.
If the company cannot repay
The proposed fallback is to explore settlement of the outstanding amount through the issue of shares in TS Venture Capital (Pty) Ltd. The intended value would be assessed by an independent, suitably qualified valuer, taking account of the company’s value and the investor’s eligible outstanding balance. The conversion formula, valuation process, shareholder rights and required company approvals still need to be designed and documented by South African legal and corporate advisers.
Shares in TS Venture Capital would be shares in the company—not direct ownership of Erf 191. Any amount converted into shares would need to be treated as settled to avoid double recovery.
What an interested investor should understand.
This is an early-stage project proposal. The following matters are material and must be verified or resolved before any investment is accepted.
Property ownership and lease
TS Venture Capital is not stated to be the registered owner. Its project rights depend on the lease and related owner arrangements remaining valid. Title, lease dates, permitted use and termination provisions must be checked.
Municipal arrears
The working draft records reported electricity arrears of R264,818.52. The current balance, any dispute or adjustment, and an approved repayment or settlement arrangement must be confirmed with the municipality.
Rental assumptions
R41,600 is potential gross rent at full occupancy, not net income. Vacancies, arrears, utilities, maintenance, rates, insurance, security and other expenses will affect cash available.
Investor security and repayment
The working agreement does not itself create a mortgage bond, perfected rental cession or effective personal suretyship. Any security, guarantees or share-conversion rights require separate legal documentation.
Owner and cash-flow arrangements
The reported 70/30 owner / company arrangement and the calculation base and payment priority still require confirmation and signed documentation with the owner.
Legal and regulatory review
The funding structure, investor disclosures, tax treatment and any applicable financial or collective-investment regulation must be assessed by qualified South African advisers before funds are solicited or accepted.
Interested in learning more?
We are currently gauging investor interest and are open to discussions with prospective funding partners. Contact us to request further project information or arrange a discussion. An enquiry is not a commitment to invest, and no funds are being requested through this website.
TS Venture Capital (Pty) Ltd
Erf 191 · Breyten · Mpumalanga
info@tsventurecapital.co.za
thabani@tsventurecapital.co.za
+27 61 512 9201
@tsventurecapital